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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: BreckHutHigh ⎊  😊 😞
Number: of 21937 
Subject: Tom Russo on BRK's OXY Bet
Date: 05/05/23 4:54 PM
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"Russo detailed one reason why Buffett may have poured more than $11 billion into Occidental Petroleum over the past 15 months.

The Berkshire chief may view his company's almost 24% stake in the oil-and-gas company ' excluding $10 billion of preferred stock and warrants to buy another $5 billion of Oxy's common stock ' as a hedge against higher energy costs, Russo said.

For example, a spike in oil prices would raise fuel costs at two of Buffett's biggest businesses, Berkshire Hathaway Energy and the BNSF Railway. However, the increases will now be partially offset by Occidental selling its oil for a higher price and collecting bigger profits ' especially as Berkshire owns enough of the fossil-fuel company to account for a proportional share of its earnings as its own.

Russo described Berkshire staking a claim to Occidental's "huge pool of oil" as a shrewd and unorthodox move. He compared it to Buffett's investment of "float," or the money left over after premiums are collected and claims are paid out by his insurance companies."

markets.businessinsider.com - Russo debt ceiling stock market outlook warren buffett berkshire oxy
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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